The AES Corporation Fact Sheet
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As of May 8, 2018 The AES Corporation Fact Sheet
Full Year 2017 Adjusted Pre-Tax Contribution (PTC)1: $1.4
Billion Before Corporate Charges of $0.4 Billion
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 15 countries through
our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational
excellence and meeting the world’s changing power needs. Our 2017 revenues were $11 billion and we own and manage $33 billion in total
assets. To learn more, please visit www.aes.com. Follow us on Twitter @TheAESCorp.
Adjusted PTC1 by Strategic Business Unit (SBU)
Eurasia
20%
25% US & Utilities
MCAC2 24%
31%
South America
1. A non-GAAP financial measure. See Appendix for definition.
2. Mexico, Central America and the Caribbean.
Contains Forward-Looking Statements 2
AES Total: 33,965 Gross MW in Operation
Fuel Type SBU
Oil, Diesel & Pet Coke
Renewables1 Eurasia
4%
16%
US &
27% 37% Gas 37% Utilities
MCAC 9%
38%
32%
South
Coal America
1. Renewables includes: hydro, wind, solar, energy storage, biomass and landfill gas.
Contains Forward-Looking Statements 3AES Total: 24,104 Proportional MW in Operation
Fuel Type SBU
Oil, Diesel & Pet Coke
Eurasia
Renewables1
5%
16%
21%
41% Gas US &
MCAC 9% 45% Utilities
30%
33%
Coal
South America
1. Renewables includes: hydro, wind, solar, energy storage, biomass and landfill gas.
Contains Forward-Looking Statements 4US and Utilities Total: 12,628 Gross MW in Operation
Fuel Type
0.5% Oil & Diesel
Renewables1
19%
46% Gas
35%
Coal
1. Renewables includes: wind, solar, energy storage and landfill gas.
Contains Forward-Looking Statements 5US and Utilities Total: 10,759 Proportional MW in
Operation
Fuel Type
0.4% Oil & Diesel
Renewables1
15%
49% Gas
35%
Coal
1. Renewables includes: wind, solar, energy storage and landfill gas.
Contains Forward-Looking Statements 6Generation – US and Utilities
El Salvador & US
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
AES Nejapa El Salvador Landfill Gas 6 100% 2011 2035 CAESS
Moncagua El Salvador Solar 3 100% 2015 2035 EEO
El Salvador Subtotal 9
AES Nejapa El Salvador Landfill Gas 6 100% 2011 2035 CAESS
Southland – Redondo Southern California
US-CA Gas 1,392 100% 1998 2018
Beach Edison
sPower US-Various Solar 1,245 50% 2017 2028-2046 Various
Puerto Rico Electric
Puerto Rico US-PR Coal 524 100% 2002 2027
Power Authority
Southland – Huntington Southern California
US-CA Gas 474 100% 1998 2019-2020
Beach Edison
Oklahoma Gas &
Shady Point US-OK Coal 360 100% 1991 2018
Electric
Buffalo Gap II US-TX Wind 233 100% 2007
Hawaii US-HI Coal 206 100% 1992 2022 Hawaiian Electric Co.
Warrior Run US-MD Coal 205 100% 2000 2030 First Energy
Buffalo Gap III US-TX Wind 170 100% 2008
sPower US-Various Wind 142 50% 2017 2036-2046 Various
Note: sPower solar MW shown in DC.
Contains Forward-Looking Statements 7Generation – US and Utilities
US
Date of
Acquisition or
AES Equity Contract
Business Location Fuel Gross MW Commencement Customer(s)
Interest Expiration Date
of Commercial
Operations
Southern California
Mountain View IV US-CA Wind 49 100% 2012 2032
Edison
Laurel Mountain ES US-WV Energy Storage 27 100% 2011
Puerto Rico Electric
Ilumina US-PR Solar 24 100% 2012 2032
Power Authority
Warrior Run ES US-MD Energy Storage 10 100% 2016
Advancion® Applications
US-PA Energy Storage 2 100% 2013
Center
Distributed PV – Utility, Municipality,
US-Various Solar 128 100% 2015-2017 2029-2042
Commercial & Utility Education, Non-Profit
Buffalo Gap I US-TX Wind 119 100% 2006 2021 Direct Energy
Laurel Mountain US-WV Wind 98 100% 2011
Southern California
Mountain View I & II US-CA Wind 65 100% 2008 2021
Edison
US Subtotal 7,548
US & Utilities Total 7,557
Contains Forward-Looking Statements 8Utilities – Global
Approximate
Number of Approximate
AES Equity
Business Location Type Gross MW Customers GWh Sold in Date of Acquisition
Interest
Served as of 2017
12/31/17
CAESS El Salvador Distribution N/A 75% 599,000 2,213 2000
CLESA El Salvador Distribution N/A 80% 398,000 898 1998
DEUSEM El Salvador Distribution N/A 74% 80,000 133 2000
EEO El Salvador Distribution N/A 89% 307,000 577 2000
El Salvador Subtotal 1,384 3,821
DPL1 US-OH Integrated 1,152 100% 521,000 14,771 2011
IPL2 US-IN Integrated 3,9193 70% 490,000 13,484 2001
US Subtotal 5,071 1,011,000 28,255
Utilities Total 5,071 2,395,000 32,076
1. As of March 31, 2018, DPL’s subsidiary AES Ohio Generation, LLC owned the following plants: Conesville Unit 4, Killen and Stuart. DPL subsidiary DP&L also
owned a 4.9% equity ownership in OVEC, an electric generating company. OVEC has two plants in Cheshire, Ohio and Madison, Indiana with a combined
generation capacity of approximately 2,109 MW. DP&L’s share of this generation is approximately 103 MW. Stuart and Killen will be closing on or before June
1, 2018.
2. CDPQ owns direct and indirect interests in IPALCO which total approximately 30%. AES owns 85% of AES US Investments and AES US Investments owns
82.35% of IPALCO. IPL plants: Georgetown, Harding Street, Petersburg and Eagle Valley.
3. 20 MW of IPL total is considered a transmission asset.
Contains Forward-Looking Statements 9South America Total: 13,010 Gross MW in Operation
Fuel Type Geography
3% Oil & Diesel Colombia
Argentina
Renewables1 8%
27% Gas
32%
44% 32%
26% Chile
Coal 28%
Brazil
1. Renewables includes: hydro, wind, energy storage, biomass and solar.
Contains Forward-Looking Statements 10South America Total: 7,290 Proportional MW in Operation
Fuel Type Geography
Oil & Diesel Colombia
Renewables1 Argentina
4% 9%
30% Gas
44%
39%
Chile 33%
27%
14%
Coal Brazil
1. Renewables includes: hydro, wind, energy storage, biomass and solar.
Contains Forward-Looking Statements 11Generation – South America
AES Gener: Colombia, Chile & Argentina
Date of Acquisition or Contract
Gross AES Equity
Business Location Fuel Commencement of Expiration Customer(s)
MW Interest
Commercial Operations Date
Chivor Colombia Hydro 1,000 67% 2000 Short-term Various
Tunjita Colombia Hydro 20 67% 2016
Colombia Subtotal 1,020
Guacolda1 Chile Coal 760 33% 2000 2018-2032 Various
Electrica Santiago2 Chile Gas/Diesel 750 67% 2000
Hydro/Coal/Diesel/
Gener – SIC3 Chile 690 67% 2000 2020-2037 Various
Biomass
Minera Escondida, Minera Spence,
Electrica Angamos Chile Coal 558 67% 2011 2026-2037
Quebrada Blanca
Cochrane Chile Coal 550 40% 2016 2030-2034 SQM, Sierra Gorda, Quebrada Blanca
Minera Escondida, Codelco, SQM,
Gener – SING4 Chile Coal 277 67% 2000 2018-2037
Quebrada Blanca
Electrica Ventanas5 Chile Coal 272 67% 2010 2025 Gener
Electrica Campiche6 Chile Coal 272 67% 2013 2020 Gener
Andes Solar Chile Solar 21 67% 2016 2037 Quebrada Blanca
Cochrane ES Chile Energy Storage 20 40% 2016
Electrica Angamos ES Chile Energy Storage 20 67% 2011
Norgener ES (Los Andes) Chile Energy Storage 12 67% 2009
Chile Subtotal 4,202
TermoAndes7 Argentina Gas/Diesel 643 67% 2000 Short-term Various
Argentina Subtotal 643
AES Gener Total 5,865
1. Guacolda plants: Guacolda 1, Guacolda 2, Guacolda 3, Guacolda 4 and Guacolda 5.
2. Electrica Santiago plants: Nueva Renca, Renca, Los Vientos and Santa Lidia. AES Gener announced the sale of this business in December 2017.
3. Gener – SIC plants: Alfalfal, Laguna Verde, Laguna Verde Turbogas, Laja, Maitenes, Queltehues, Ventanas 1, Ventanas 2 and Volcan.
4. Gener – SING plants: Norgener 1 and Norgener 2.
5. Electrica Ventanas plant: Ventanas 3.
6. Electrica Campiche plant: Ventanas 4.
7. TermoAndes is located in Argentina, but is connected to both the SING in Chile and the SADI in Argentina.
Contains Forward-Looking Statements 12Generation – South America
Argentina & Brazil
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
Alicura Argentina Hydro 1,050 100% 2000
Paraná-GT Argentina Gas/Diesel 845 100% 2001
San Nicolás Argentina Coal/Gas/Oil 675 100% 1993
Guillermo Brown1 Argentina Gas/Diesel 576 0% 2016
Energia Provincial
Los Caracoles1 Argentina Hydro 125 0% 2009 2019 Sociedad del Estado
(EPSE)
Cabra Corral Argentina Hydro 102 100% 1995 Various
Ullum Argentina Hydro 45 100% 1996 Various
Sarmiento Argentina Gas/Diesel 33 100% 1996
El Tunal Argentina Hydro 10 100% 1995 Various
Argentina Subtotal 3,461
Tietê 2 Brazil Hydro 2,658 24% 1999 2029 Various
Alto Sertão II Brazil Wind 386 24% 2017 2033-2035 Various
Tietê Subtotal 3,044
Uruguaiana Brazil Gas 640 46% 2000
Brazil Subtotal 3,684
South America Total 13,010
1. AES operates this facility through management or O&M agreements and owns no equity interest in this business.
2. Tietê plants: Áqua Vermelha (1,396 MW), Bariri (143 MW), Barra Bonita (141 MW), Caconde (80 MW), Euclides da Cunha (109 MW), Ibitinga (132 MW),
Limoeiro (32 MW), Mog-Quaçu (7 MW), Nova Avanhandava (347 MW), Promissão (264 MW), Sao Joaquim (3 MW) and Sao Jose (4 MW).
Contains Forward-Looking Statements 13Mexico, Central America & Caribbean (MCAC) Total:
2,824 Gross MW in Operation
Fuel Type Geography
Oil & Pet Coke
Panama Dominican
Republic
22%
28%
35%
42% Gas
26%
37%
10%
Renewables1
Coal Mexico
1. Renewables includes: hydro and energy storage.
Contains Forward-Looking Statements 14Mexico, Central America & Caribbean (MCAC) Total:
2,112 Proportional MW in Operation
Fuel Type Geography
Panama Dominican
Pet Coke
Republic
22%
27%
34%
45% Gas
22%
44%
Renewables1 6%
Mexico
Coal
1. Renewables includes: hydro and energy storage.
Contains Forward-Looking Statements 15Generation – Mexico, Central America & Caribbean
(MCAC)
Dominican Republic & Mexico
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
Dominican
DPP (Los Mina) Gas 358 85% 1996 2022 CDEEE
Republic
Ede Norte, Ede Este,
Dominican
Andres Gas 319 85% 2003 2022 Ede Sur, Non-
Republic
Regulated Users
Dominican Ede Norte, Ede Este,
Itabo1 Coal 295 43% 2000 2022
Republic Ede Sur
Dominican
Andres ES Energy Storage 10 85% 2017
Republic
Dominican
Los Mina DPP ES Energy Storage 10 85% 2017
Republic
Dominican Republic
992
Subtotal
Comision Federal de
Mérida III Mexico Gas 505 75% 2000 2025
Eletricidad
Termoelectrica del Golfo
Mexico Pet Coke 275 99% 2007 2027 CEMEX
(TEG)
Termoelectrica del
Mexico Pet Coke 275 99% 2007 2027 Peñoles
Peñoles (TEP)
Mexico Subtotal 1,055
1. Itabo plants: Itabo complex (two coal-fired steam turbines and one gas-fired steam turbine).
Contains Forward-Looking Statements 16Generation – Mexico, Central America & Caribbean
(MCAC)
Panama
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
Electra Noreste,
Bayano Panama Hydro 260 49% 1999 2030 Edemet, Edechi,
Other
Changuinola Panama Hydro 223 90% 2011 2030 AES Panama
Electra Noreste,
Chiriqui – Esti Panama Hydro 120 49% 2003 2030 Edemet, Edechi,
Other
Electra Noreste,
Estrella de Mar I Panama Heavy Fuel Oil 72 49% 2015 2020
Edemet, Edechi
Electra Noreste,
Chiriqui – Los Valles Panama Hydro 54 49% 1999 2030 Edemet, Edechi,
Other
Electra Noreste,
Chiriqui – La Estrella Panama Hydro 48 49% 1999 2030 Edemet, Edechi,
Other
Panama Subtotal 777
MCAC Total 2,833
Contains Forward-Looking Statements 17Eurasia Total: 5,503 Gross MW in Operation
Fuel Type Geography
Oil
Renewables1 3% Vietnam Bulgaria
6%
15%
23%
37% Gas 8% India
11%
Jordan
Coal 54%
31%
12%
United
Kingdom Netherlands
1. Renewables includes: wind and energy storage.
Contains Forward-Looking Statements 18Eurasia Total: 3,942 Proportional MW in Operation
Fuel Type Geography
Renewables1 Oil Vietnam
Bulgaria
4% 4%
16%
21%
37% Gas
5% India
6% Jordan
Coal 55% 8%
44%
Netherlands
United
Kingdom
1. Renewables includes: wind and energy storage.
Contains Forward-Looking Statements 19Generation – Eurasia
Bulgaria, India, Jordan & Netherlands
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
Natsionalna
Maritza Bulgaria Coal 690 100% 2011 2026
Elektricheska
Natsionalna
St. Nikola Bulgaria Wind 156 89% 2010 2025
Elektricheska
Bulgaria Subtotal 846
GRID Corporation
OPGC India Coal 420 49% 1998 2026
Ltd.
India Subtotal 420
National Electric
Amman East Jordan Gas 381 37% 2009 2033
Power Company
National Electric
IPP4 Jordan Heavy Fuel Oil 250 36% 2014 2039
Power Company
Jordan Subtotal 631
Dow Benelux, Delta
Elsta Netherlands Gas 630 50% 1998 2018 Nutsbedrijven, Essent
Energy
Netherlands ES Netherlands Energy Storage 10 100% 2015
Netherlands Subtotal 640
Contains Forward-Looking Statements 20Generation – Eurasia
United Kingdom & Vietnam
Date of
Acquisition or Contract
AES Equity
Business Location Fuel Gross MW Commencement Expiration Customer(s)
Interest
of Commercial Date
Operations
Power NI and Single
Ballylumford United Kingdom Gas 1,015 100% 2010 2023 Electricity Market
(SEM)
Single Electricity
Kilroot1 United Kingdom Coal/Oil 701 99% 1992
Market (SEM)
Kilroot ES United Kingdom Energy Storage 10 100% 2015
United Kingdom Subtotal 1,726
Mong Duong 2 Vietnam Coal 1,240 51% 2015 2040 EVN
Vietnam Subtotal 1,240
Eurasia Total 5,503
1. Includes Kilroot Open Cycle Gas Turbine (OCGT).
Contains Forward-Looking Statements 21Energy Storage
Date of Acquisition
Interconnection AES Equity or Commencement
Business Location Fuel Resource MW1
MW Interest of Commercial
Operations
Laurel Mountain ES US-WV Energy Storage 27 54 100% 2011
Harding Street ES US-IN Energy Storage 20 40 70% 2016
Warrior Run ES US-MD Energy Storage 10 20 100% 2016
Advancion® Applications Center US-PA Energy Storage 2 4 100% 2013
US and Utilities Subtotal 59 118
Cochrane ES Chile Energy Storage 20 40 40% 2016
Electrica Angamos ES Chile Energy Storage 20 40 67% 2011
Norgener ES (Los Andes) Chile Energy Storage 12 24 67% 2009
South America Subtotal 52 104
Andres ES Dominican Republic Energy Storage 10 20 85% 2017
Los Mina DPP ES Dominican Republic Energy Storage 10 20 85% 2017
MCAC Subtotal 20 40
Netherlands ES Netherlands Energy Storage 10 20 100% 2015
Kilroot ES United Kingdom Energy Storage 10 20 100% 2015
Eurasia Subtotal 20 40
Energy Storage Total 151 302
1. Resource MW are power plant equivalent dispatchable resource, including supply and load capacity.
Contains Forward-Looking Statements 22AES Total: 3,930 Gross MW Under Construction
Fuel Type Geography
Renewables1
Eurasia
Coal
24% 34%
34% US &
41% Utilities
10%
42%
MCAC 15%
Gas
South America
1. Renewables includes: hydro, solar and energy storage.
Contains Forward-Looking Statements 23AES Total: 2,631 Proportional MW Under Construction
Fuel Type Geography
Renewables1
Eurasia
Coal
19%
25% 25%
US &
59% Utilities
7%
MCAC
9%
56% South America
Gas
1. Renewables includes: hydro, solar and energy storage.
Contains Forward-Looking Statements 243,930 Gross MW of Generation Under Construction
Business Location Fuel Gross MW AES Equity Interest Expected Commercial
Operations Date
Green Beanworks C & D US-CA Solar 6 50% 1H 2018
(sPower)
Distributed PV – Commercial US-Various Solar 31 100% 1H-2H 2018
Bosforo El Salvador Solar 30 100% 1H-2H 2018
Salt River US-AZ Energy Storage 10 100% 2H 2018
Antelope Expansion (sPower) US-CA Solar 105 50% 2H 2018
Lawai US-HI Solar/Energy Storage 48 100% 1H 2019
Southland Repowering US-CA Gas 1,284 100% 1H 2020
Alamitos Energy Center US-CA Energy Storage 100 100% 1H 2021
US and Utilities Subtotal 1,614
Boa Hora Brazil Solar 75 24% 2H 2018
Alto Maipo Chile Hydro 531 62% 2H 2020
South America Subtotal 606
Colón1 Panama Gas 380 50% 2H 2018
MCAC Subtotal 380
OPGC 2 India Coal 1,320 49% 2H 2018
Delhi ES India Energy Storage 10 50% 2H 2018
Eurasia Subtotal 1,330
Total Under Construction 3,930
1. Project also includes 180,000 m3 LNG storage tank and regasification facility, which is expected to come on-line in 2019.
Contains Forward-Looking Statements 25Appendix l 2017 Adjusted EPS1 Roll-Up Slide 27 l Reconciliation Slide 28 l Definitions Slide 29 1. A non-GAAP financial measure. See “definitions”. Contains Forward-Looking Statements 26
FY Adjusted EPS1 Roll-Up
$ in Millions, Except Per Share Amounts
FY 2017 FY 2016 Variance
Adjusted PTC1
US & Utilities $361 $347 $14
South America $446 $428 ($18)
MCAC $340 $267 $73
Eurasia $290 $283 $7
Total SBUs $1,437 $1,325 $112
Corp/Other ($420) ($475) $55
Total AES Adjusted PTC1,2 $1,017 $850 $167
Adjusted Effective Tax Rate 30% 27%
Diluted Share Count 662 662
Adjusted EPS1 $1.08 $0.94 $0.14
1. A non-GAAP financial measure. See Slide 28 for reconciliation to the nearest GAAP measure and “definitions”.
2. Includes $66 million and $31 million in after-tax equity in earnings for FY 2017 and FY 2016, respectively.
Contains Forward-Looking Statements 27Reconciliation of FY Adjusted PTC1 and Adjusted EPS1
FY 2017 FY 2016
Per Share Per Share
Net of NCI2 (Diluted) Net of Net of NCI2 (Diluted) Net of
$ in Millions, Except Per Share Amounts NCI2 NCI2
Loss from Continuing Operations, Net of Tax, Attributable to AES and Non-
($507) ($0.76)3 ($20) ($0.04)
GAAP Diluted EPS
Add: Income Tax Expense (Benefit) Attributable to AES $828 ($111)
Pre-Tax Contribution $321 ($131)
Adjustments
Unrealized Derivative Gains ($3) - ($9) ($0.01)
Unrealized Foreign Currency (Gains) Losses ($59) ($0.10) $22 $0.03
Disposition/Acquisition Losses $123 $0.194 $6 $0.015
Impairment Losses $542 $0.826 $933 $1.417
Losses on Extinguishment of Debt $62 $0.098 $29 $0.059
Restructuring Costs $31 $0.05 - -
U.S. Tax Law Reform Impact - $1.0810 - -
Less: Net Income Tax Benefit - ($0.29)11 - ($0.51)12
Adjusted PTC1 & Adjusted EPS1 $1,017 $1.08 $850 $0.94
1. Non-GAAP financial measures. See “definitions”.
2. NCI is defined as Noncontrolling Interests.
3. In calculating diluted loss per share under GAAP of ($0.77), the Company excluded common stock equivalents from the weighted average shares as their inclusion would be anti-dilutive. However, for purposes of calculating Adjusted EPS, the impact of dilutive common stock equivalents of
$0.01 was included, resulting in Non-GAAP diluted loss per share of ($0.76)..
4. Amount primarily relates to loss on sale of Kazakhstan CHPs of $49 million, or $0.07 per share, realized derivative losses associated with the sale of Sul of $38 million, or $0.06 per share, loss on sale of Kazakhstan Hydroelectric plants of $33 million, or $0.05 per share, costs associated
with early plant closure of DPL of $24 million, or $0.04 per share; partially offset by gain on Masinloc contingent consideration of $23 million, or $0.03 per share and gain on sale of Zimmer and Miami Fort of $13 million, or $0.02 per share.
5. Amount primarily relates to the loss on deconsolidation of UK Wind of $20 million, or $0.03 per share and losses associated with the sale of Sul of $10 million, or $0.02; partially offset by the gain on sale of DPLER of $22 million, or $0.03 per share.
6. Amount primarily relates to asset impairment at Kazakhstan CHPs of $94 million, or $0.14 per share, at Kazakhstan hydroelectric plants of $92 million, or $0.14 per share, at Laurel Mountain of $121 million, or $0.18 per share, at DPL of $175 million, or $0.27 per share and at Kilroot of $37
million, or $0.05 per share.
7. Amount primarily relates to asset impairments at DPL of $859 million, or $1.30 per share; $159 million at Buffalo Gap II ($49 million, or $0.07 per share, net of NCI); and $77 million at Buffalo Gap I ($23 million, or $0.03 per share, net of NCI).
8. Amount primarily relates to losses on early retirement of debt at the Parent Company of $92 million, or $0.14 per share, at AES Gener of $20 million, or $0.02 per share, at IPALCO of $9 million or 0.01 per share; partially offset by a gain on early retirement of debt at Alicura of $65 million, or
$0.10 per share.
9. Amount primarily relates to the loss on early retirement of debt at the Parent Company of $19 million, or $0.03 per share.
10. Amount relates to a one-time transition tax on foreign earnings of $675 million, or $1.02 per share and the remeasurement of deferred tax assets and liabilities to lower corporate tax rates of $39 million, or $0.06 per share.
11. Amount primarily relates to the income tax benefit associated with asset impairment losses of $148 million, or $0.22 per share in the twelve months ended December 31, 2017.
12. Amount primarily relates to the income tax benefit associated with asset impairment of $332 million, or $0.50 per share in the twelve months ended December 31, 2016.
Contains Forward-Looking Statements 28Definitions
l Adjusted Earnings Per Share, a non-GAAP financial measure, is defined as diluted earnings per share from continuing operations excluding
gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to
derivative transactions, (b) unrealized foreign currency gains or losses, (c) gains or losses and associated benefits and costs due to
dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds,
(d) losses due to impairments, (e) gains, losses and costs due to the early retirement of debt, (f) costs directly associated with a major
restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office consolidation; and (g) tax benefit or
expense related to the enactment effects of 2017 U.S. tax law reform. The GAAP measure most comparable to Adjusted EPS is diluted
earnings per share from continuing operations. We believe that Adjusted EPS better reflects the underlying business performance of the
Company and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability
due to unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, losses due to impairments
and strategic decisions to dispose of or acquire business interests, retire debt or implement restructuring initiatives, which affect results in a
given period or periods. Adjusted EPS should not be construed as an alternative to diluted earnings per share from continuing operations,
which is determined in accordance with GAAP. For the year ending December 31, 2017, the definition was revised to exclude associated
benefits and costs due to acquisitions, dispositions and early plant closures, including the tax impact of decisions made at the time of sale to
repatriate proceeds; costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts,
relocations, and office consolidation; and tax benefit or expense related to the enactment effects of 2017 U.S. tax law reform.
l Adjusted Pre-Tax Contribution, a non-GAAP financial measure, is defined as pre-tax income from continuing operations attributable to AES
excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions, (b) unrealized
foreign currency gains or losses, (c) gains or losses and associated benefits and costs due to dispositions and acquisitions of business
interests, including early plant closures, (d) losses due to impairments, (e) gains, losses and costs due to the early retirement of debt, and (f)
costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office
consolidation. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses
excluded from consolidated entities. The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable
to AES. We believe that Adjusted PTC better reflects the underlying business performance of the Company and is considered in the
Company’s internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses
related to derivative transactions, unrealized foreign currency gains or losses, losses due to impairments and strategic decisions to dispose of
or acquire business interests, retire debt or implement restructuring initiatives, which affect results in a given period or periods. In addition, for
Adjusted PTC, earnings before tax represents the business performance of the Company before the application of statutory income tax rates
and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted
PTC should not be construed as an alternative to income from continuing operations attributable to AES, which is determined in accordance
with GAAP. For the year ending December 31, 2017, the definition was revised to exclude associated benefits and costs due to dispositions
and acquisitions of business interests, including early plant closures, and costs directly associated with a major restructuring program,
including, but not limited to, workforce reduction efforts, relocations, and office consolidation.
Contains Forward-Looking Statements 29You can also read
